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Beige Book: Economy sees rebound from weather-related declines

The U.S. economy rebounded from weather-related declines in recent weeks, the Federal Reserve said on Wednesday in its latest Beige Book.

Economic activity was modest or moderate in eight of the Fed's districts, with consumer spending up in most districts as well.

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"Consumer spending increased in most Districts, as weather conditions improved and foot traffic returned," the document said in describing conditions across the country.

The report indicated that the picture was more mixed for housing, with prices higher but inventories low.

Economic activity picked up in Chicago, Philadelphia and New York, but declined in Cleveland and St. Louis.

Despite the pickup in economic activity, the report is unlikely to move Fed policy. Chair Janet Yellen said at a speech earlier in the day that the central bank remains committed to keeping interest rates low even as it unwinds its monthly asset-purchasing program.

In its last Beige Book report in early March, the Fed said severe weather across much of the United States had taken a toll on shopping and consumer spending in the weeks prior, leading to slower economic growth or outright contraction in some areas of the country.

But the current report noted weather effects "less severe than earlier this year" in manufacturing though in some districts weather was cited as a factor in weak loan demand.

The report found prices over to be "generally stable or slightly higher."

There was little market reaction to the report, with both stocks and bond yields continuing on a path higher.

Get the full report here.

—CNBC.com with Reuters

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